When Service of Process Comes Up Short
- Part of me decided to write about this ruling because it allowed me to start the article with, “I guess it’s true … size matters.” A Washington Appeals Court has affirmed a lower court’s ruling vacating a default judgment for an unpaid debt against a consumer, ruling that the differences in size between the plaintiff, who is six feet, six inches tall, and the description of the man provided by the process server who served the complaint, five feet, 10 inches, was one reason why the judgment should be vacated.
- More details here
Court Clarifies When Vehicle Repossessions Cross the FDCPA Line
- The Court of Appeals for the Ninth Circuit has affirmed a lower court’s ruling that the defendants in a Fair Debt Collection Practices Act case did not violate the statute when repossessing the plaintiff’s vehicle, ruling there was no breach of the peace.
- More details here
42 Million Users, 11,000 FTEs: What BofA’s Virtual Assistant Signals for AI in Collections
- Bank of America’s virtual assistant, Erica, is now used by 42 million consumers, 40,000 business customers and 95% of the bank’s 213,000 employees, handling roughly two million interactions a day and delivering efficiency gains leaders equate to the work of 11,000 employees. For operations leaders watching AI closely, the headline is not just scale. It is how a highly governed, task-focused assistant can materially reduce call volumes, improve digital containment and still hand off seamlessly to humans when needed.
- More details here
New Senate Report Flags Risks as Private Student Lending Expands
- A new Senate report warns that private student loan lending is poised to expand rapidly following recent federal student loan caps, potentially reshaping how millions of borrowers finance higher education. The report analyzes responses from six major private student loan lenders and concludes that more students and families will likely turn to private loans as limits on federal borrowing take effect. Lawmakers argue this shift could expose borrowers to higher costs and fewer protections, while lenders prepare to meet rising demand. For collection agencies, banks, fintechs, and healthcare providers that interact with consumers carrying student loan debt, the findings point to a growing segment of borrowers who may face tighter budgets, fewer relief options, and increased financial stress.
- More details here
51 Companies Seeking Collection Talent
- Banks, credit unions, fintechs, collection operations, creditors, debt buyers, collection law firms — they are all actively hiring. Check out this week’s job listings summary to see more than 50 different opportunities across the country and across the industry.
- More details here
WORTH NOTING: A look at the 30 different state AG races that are on the ballot this year and which are the ones to watch … The debt snowball vs. the avalanche — which one will get you out of credit card debt faster? … A lot of consumers are using AI to help provide financial advice, but not everyone trusts what the machines are saying … Credit card debt is a dating dealbreaker for a lot of consumers … A Florida man has pleaded guilty to charges after threatening to commit a school shooting if a law firm kept attempting to collect on a defaulted business loan …Oracle has released an agentic AI platform that offers services for collections … A lot of consumers are planning on buying a car this year … Nine in 10 consumers believe we are in a “cost-of-living” crisis.
Wisdom Wednesday, part I
Wisdom Wednesday, part II
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